Why Pledge?

Two million out of eight million mortgage holders in the UK have lapsed onto their lender’s Standard Variable Rate. They stand to save an average of £4.5k a year by switching to the best available alternative mortgage deal.

This represents £10 billion in annual over-payment. A key reason for this huge loss to consumers is that switching isn’t simple or clear.

Few lenders choose to share simple mortgage information with their customers. Too few lenders send notifications when a deal is about to lapse, telling borrowers that they can switch. And too many lenders bury costs like arrangement fees of up to £2,000 in the small print.

What does the Mortgage Switch Guarantee involve?

The MSG calls on lenders to:Help make mortgages fairer.

  • Show borrowers key mortgage information online, or via SMS messages
  • Contact borrowers three months before their initial rate period ends, electronically & by post.
  • Display the True Cost of a mortgage’s initial rate period.

Help make mortgages fairer.